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Monday, October 2, 2023

Crypto Employees Lay Off: Outcomes of the Crypto Crash

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Cryptocurrency prices dropped sharply on Tuesday. It was the lowest price for Bitcoin in 18 months. There are various reasons for this crash, such as the fact that U.S. interest rates are rising. It is a big surprise for an unstable asset class. 

Coinbase Global Inc., a cryptocurrency exchange, announced that it will cut approximately 1100 jobs or 18% of its staff. BlockFi and Crypto.com, which are among the leading companies, also shed hundreds of jobs. Various reports also tell us that Meta Platforms and Intel Corp (INTC.O) have stopped hiring.

Reports also say that laid-off employees get various benefits from the company. The primary benefits are 14 weeks of severance, mental health advantages, and health insurance for four months.

According to reports, Coinbase paid $14 million for an ad in the Super Bowl four months ago. The ad has a QR code that jumps around the screen. It gives exciting offers to its viewers. The offer is to sign up now and get $15 in Bitcoin. The entire picture changes in a few months.

Brian Armstrong, CEO of Coinbase, conveyed his views on the company’s blog. Furthermore, he criticizes the economic conditions leading to the “crypto winter” and says that the company has “overhired.” According to The Wall Street Journal in May, since Coinbase’s IPO in April 2021, Armstrong, Ehrsam, Choi, and Chatterjee have raked in more than $1.2 billion in share sales.

At the opening of trading, the company’s shares were trading at $382. Around $52 is the current trading value. April’s New York Times article featured the article. According to this article, employees are leaving leading tech companies for crypto startups. Surojit Chatterjee, the CPO at Coinbase, increased his stake to more than $600 million during the 14 months when employees left Google for Coinbase.

Armstrong also answered the employee’s petition on Twitter. He called the situation “really dumb on multiple levels” and encouraged employees who disagreed with the solution to quit.

Armstrong claimed the petition was dumb, but the employees voiced their views. According to the petition, the company hired thousands of employees for illogical positions .Job offers already accepted by Coinbase are being retracted. Following this step, staff will be reduced. This sudden change particularly affected visa holders.

Job offers already accepted by Coinbase are being retracted. Following this step, staff will be reduced. This sudden change particularly affected visa holders. Many leading firms, such as BlockFi, Crypto.com, and Gemini, have also announced layoffs. It happens when Bitcoin prices have dropped in the last 12 weeks. 

Wall Street Watchdog’s chief executive officer, Robert Cook, expresses its views that it has plans to develop its capabilities as a Financial Industry Regulatory Authority.

FINRA has multiple members that can transact in digital asset securities. They can easily access crypto-related products. There are also digital asset verification techniques that are used in multiple cross-market supervision on various blockchains.

A crash in the cryptocurrency market has specific effects on the market. The leading crypto company, Coinbase, has reduced its workforce. It shows how affects various things.

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